Costa Mesa, Calif. – December 24, 2008 – Although the frigid financial climate has impacted all facets of M&A deal activity, global middle-market investment bank McGladrey Capital Markets LLC continues to successfully close transactions. Investment bankers at the firm have concluded five middle-market M&A deals within the last twelve days alone. All five had private equity components.
“We expect to close as many deals this December as last December, which seems remarkable under such a stressful lending market,” says Hector J. Cuellar, president. “We did see a slowdown in November, as the financial meltdown took a toll, but the activity has returned this month, and we’re on track to close about as many deals this year as in 2007."
Given today’s financing environment, the recent flurry of closed deal activity is a testament to the firm’s ability to seek out solutions and manage transactions to a close under very difficult conditions. “It’s been a challenge up until the final hour on many transactions this week,” Cuellar says. “But our clients are pleased with the results so far.”
The firm has also signed six sell-side engagement agreements and three buy-side engagement agreements within the month of December so far, signaling continued deal activity in 2009.
M&A isn't the only area where the firm is seeing activity. Demand for restructuring and capital raising services is on the rise. Liquidity concerns have led companies to reach out for the firm’s financing expertise within the past month. "As the credit market becomes tighter, lenders are increasingly looking to trusted, established relationships," Cuellar says. "And that makes having the right investment banking team on your side all that much more important."
Some sectors are slowing: consumer discretionary sectors and cyclical industries aren't expected to see as much deal activity until signs of consumer confidence recover. Industries such as healthcare, technology and defense, however, remain popular targets for deals. “Good deals continue to happen, both for strategic and private equity buyers,” Cuellar says.
About McGladrey Capital Markets
McGladrey Capital Markets LLC (www.mcgladreycm.com) is a global provider of investment banking services to private and public companies with annual revenues of up to $1 billion. The firm’s services include mergers, acquisitions, divestitures, recapitalizations, capital raising, fairness opinions and restructurings. McGladrey Capital Markets, which offers in-depth expertise in 13 distinct industry sectors, brings together companies, capital and creativity on a national and international scale to help clients achieve their personal and strategic objectives.
McGladrey Capital Markets is affiliated with RSM McGladrey Inc., a professional services firm providing accounting, tax and business consulting. Both firms are indirect subsidiaries of H&R Block Inc. (NYSE: HRB), the world’s preeminent tax services provider. McGladrey Capital Markets is also a member of RSM International, a worldwide network of professional services firms.
McGladrey Capital Markets’ international headquarters are located in Costa Mesa, Calif. It also has offices in Chicago, Boston, Dallas, New York and London. The firm is a member of FINRA and SIPC.